Procedure and costs of the European Small Claims Procedure

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Cross-border disputes are often a source of anxiety for litigants. Unpredictable delays, uncertain costs and complex formalities can discourage even the most determined creditors. The european small claims procedure responds precisely to these concerns. It establishes a clear framework for the procedural steps and associated costs.

Understand the chronological development and financial aspects of the this procedure will enable you to assess its relevance to your situation. This article details the main stages and the costs involved.

The written nature of the procedure

The European small claims procedure is fundamentally written. This principle, set out in Article 5 of Regulation (EC) No 861/2007, is one of its main strengths.

This avoids the need for costly trips abroad, which are particularly dissuasive for small claims. Communication is essentially by exchange of forms and documents between the parties and the court.

The holding of a hearing remains exceptional. The court only organises them in two specific cases:

• If it considers it impossible to reach a decision on the basis of written evidence
• If one of the parties expressly so requests

The court may refuse this request for a hearing if it deems it unnecessary to ensure a fair hearing. Written reasons must be given for this refusal. It can only be contested with the final decision.

When a hearing is deemed necessary, the rules favour the use of remote communication technologies. Article 8 provides for the use of videoconferencing or teleconferencing. This option is systematically favoured, unless particular circumstances make these technologies inappropriate.

The parties also have certain prerogatives regarding the manner in which they appear in court:

• A party summoned to appear in person may request the use of communication technologies
• Conversely, a party summoned by videoconference may ask to appear in person.

These requests may be refused by the court. The parties are then informed that the reimbursement of personal appearance costs remains subject to the general conditions for the apportionment of costs.

In France, Article 1388 of the Code of Civil Procedure provides that if the court decides to hold a hearing, it shall hear the case in accordance with the procedure applicable before it.

Procedural timetable following acceptance of the application

The procedure follows a precise timetable. Each stage is governed by strict deadlines that the court and the parties must respect.

First stage: notification to the defendant. Within 14 days of receiving the claim form, the court:

• Complete part I of the answer form C
• Send this form to the defendant, together with a copy of the application and supporting documents.

Second stage: the defendant's response. The defendant has 30 days from the date of notification to respond. The defendant may:

• Accept the request
• Contest it in whole or in part
• Making a counterclaim

The defendant usually uses form C, but may respond by any other suitable means.

Third stage: informing the claimant. Within 14 days of receiving the response, the court sends a copy to the claimant, together with any supporting documents.

Fourth stage: court decision. The court shall give its decision within 30 days of receipt of the response. This period may be extended if:

• Additional information is required
• Evidence must be obtained
• A hearing must be organised

If the defendant does not respond within the time limit, the court will also give its decision within 30 days of the expiry of the time limit for response.

The procedure may be lengthened in the event of a counterclaim. The original claimant then has 30 days to respond. The court must give its decision within 30 days of the reply.

If the counterclaim exceeds €5,000, the entire dispute falls outside the scope of the European procedure. It is then dealt with in accordance with national procedural rules.

The Regulation allows the court to extend these time limits "in exceptional circumstances" and if "necessary to preserve the rights of the parties". This provision introduces a degree of flexibility while preserving the objective of speedy proceedings.

System of procedural costs

Legal costs are often a major obstacle to the recovery of small cross-border claims. Regulation (EC) No 861/2007, amended in 2015, establishes a protective framework for litigants.

Article 15a lays down two fundamental principles:

• Costs must not be disproportionate to the value of the dispute
• They may not exceed those charged for simplified national procedures

These rules ensure that the cost of access to justice remains reasonable and proportionate.

The regulation also establishes rules for apportioning costs between the parties. Article 16 enshrines the classic "loser pays" principle: the unsuccessful party bears the costs of the proceedings.

There is an important limitation to this rule. The court will not award costs to the successful party:

• Which were not essential
• Which were disproportionate to the dispute

This essential clarification prevents one party from incurring excessive costs in the hope of recovering them.

In France, the rules governing costs vary depending on the court seised:

For magistrates' courts, there are no initial legal costs. Any costs incurred relate to:

• Execution costs
• Costs of service (if service by registered letter fails)
• Irreparable costs (in particular lawyers' fees)

Fees are charged by the commercial courts:

• 67 euros if a hearing is held
• 17.80 if there is no hearing

To these amounts must be added the other costs provided for under French law.

Practical terms of payment

The payment of legal costs in a cross-border context has traditionally posed practical difficulties. Some Member States required physical payment at the court registry or through a local lawyer.

Amending Regulation (EU) 2015/2421 has remedied this situation. Article 15a(2) now requires Member States to make remote payment methods available.

Each country must propose at least one of the following options:

• Bank transfer
• Payment by credit or debit card
• Direct debit from the applicant's bank account

This obligation considerably facilitates access to justice for creditors established in another Member State. It eliminates the need to travel physically or to use a local intermediary.

In France, the order of 1 August 2017 authorised the implementation of an automated processing system called "e-CODEX". This system enables the procedure to be introduced and monitored electronically, including the payment of fees electronically.

However, statements made by the French authorities to the European Commission indicate certain limitations. Communication with the French courts is still mainly by post. Further developments are expected to make paperless processing fully effective.

The 2015 reform also provided an important clarification regarding the translation of documents. Article 6 of the Regulation provides that the court or tribunal may require a translation of documents only if it appears "necessary to enable it to give its decision".

This pragmatic solution significantly reduces translation costs, which are often disproportionate to the amount in dispute.

For a precise estimate of costs and timescales in your particular situation, Our team can analyse your case and suggest the most cost-effective and efficient strategy..

Sources

• Regulation (EC) No 861/2007 of the European Parliament and of the Council
• Regulation (EU) 2015/2421 of 16 December 2015
• French Code of Civil Procedure, articles 1382 to 1391
• Order of 1 August 2017 authorising the implementation of "e-CODEX" processing

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